Proxy advisory firms offer disparate recommendations to Finolex Cables shareholders on re-appointment of Chairman
Finolex Cables Limited (FCL) regarding a resolution pertaining to the re-appointment of Deepak Chhabria as a whole-time director designated as an executive chairman for the term commencing on July 1, 2023 and concluding on June 30, 2028.
InGovern Research has suggested that FCL shareholders seek a postponement of the resolution, citing concerns over the adequacy of the notice period. On the other hand, Stakeholders Empowerment Services (SES) has advised shareholders to vote against it, while Institutional Investors Advisory Services (IiAS) has recommended that shareholders vote in favour of the resolution.
InGovern has alleged that the corrigendum published on September 16, 2023, does not meet the requirement of Section 118 (10) of the Companies Act and ICSI secretarial standards.
The company issued a corrigendum on September 16, 2023, to the notice of the AGM. The original notice was dated September 4, 2023, and issued 25 days ahead of the AGM date of September 29, 2023.
“The ICSI Secretarial Standards 2, which has the force of law, states that any amendment to the notice, including the addition of any item of business, can be made provided the notice of amendment is given to all persons entitled to receive the notice of the Meeting at least twenty-one clear days before the Meeting,” InGovern said in a note.
According to the InGovern report, amendments to the Notice, if any, including the addition of any item of business, should be made at least twenty-one days before the Meeting.
